$500 5,000 units
$2,500 10,000 units
$5,000 20,000 units
$10,000 50,000 units
$25,000 100,000 units
Each trader should adjust his three 10-trade campaigns according
to the appropriate risk/reward and stop/profit level for his own
trading profile.
As an alternative, you may trade by leverage ratio. Many
broker/dealers allow you to trade fixed leverage ratios between
10:1 and 50:1. Start low (10:1) and go up gradually (15:1, 20:1)
with each successful campaign.
Trading Campaigns
Don’t let losses discourage you. Even the best traders have periods of long
losing streaks. My record is 16 lemons in a row. I came close to throwing in the
towel. If you have several losses or a single large loss, the first thing to do is turn
off your computer (after closing all your trades, of course) and take a break.
Style 107
$2,500 10,000 units
$5,000 20,000 units
$10,000 50,000 units
$25,000 100,000 units
Each trader should adjust his three 10-trade campaigns according
to the appropriate risk/reward and stop/profit level for his own
trading profile.
As an alternative, you may trade by leverage ratio. Many
broker/dealers allow you to trade fixed leverage ratios between
10:1 and 50:1. Start low (10:1) and go up gradually (15:1, 20:1)
with each successful campaign.
Trading Campaigns
Don’t let losses discourage you. Even the best traders have periods of long
losing streaks. My record is 16 lemons in a row. I came close to throwing in the
towel. If you have several losses or a single large loss, the first thing to do is turn
off your computer (after closing all your trades, of course) and take a break.
Style 107
DEVELOPING A TRADING CODEX
Make the break time long enough to accomplish two things: (1) Clear your
head of trading and the intense emotion of the loss. This usually takes more
than a few days. (2) When you feel refreshed and clearheaded, analyze the
losses. What caused them and what can you do to prevent them from recurring?
Make the appropriate adjustments and begin afresh, slowly. Don’t dwell
on losses or profits; come to each trading session fresh.
Another tip: Don’t discuss your trading with anyone, at least not in any
detail. Avoid trading clubs and getting addicted to the numerous FOREX blogs
and forums now populating the Internet.
head of trading and the intense emotion of the loss. This usually takes more
than a few days. (2) When you feel refreshed and clearheaded, analyze the
losses. What caused them and what can you do to prevent them from recurring?
Make the appropriate adjustments and begin afresh, slowly. Don’t dwell
on losses or profits; come to each trading session fresh.
Another tip: Don’t discuss your trading with anyone, at least not in any
detail. Avoid trading clubs and getting addicted to the numerous FOREX blogs
and forums now populating the Internet.
Ten Most Common Causes of Losing Trades
1. Overtrading.
2. Stops too close or unrealistic with respect to price objectives.
3. Spur-of-the-moment trading.
4. Trading high-volatility, high-directional-movement markets.
5. Trading the news instead of the reaction to it.
6. Trading outside of your market environment profile.
7. Trading crosses and exotics.
8. Trading over multiple sessions.
9. Trading when under duress.
10. Trading with money you cannot afford to lose.
2. Stops too close or unrealistic with respect to price objectives.
3. Spur-of-the-moment trading.
4. Trading high-volatility, high-directional-movement markets.
5. Trading the news instead of the reaction to it.
6. Trading outside of your market environment profile.
7. Trading crosses and exotics.
8. Trading over multiple sessions.
9. Trading when under duress.
10. Trading with money you cannot afford to lose.
zero
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